1

Delivering Value to Shareholders

Interim Results27 November 2007

2

Leo QuinnChief Executive

3

Interim Results 2007/2008

Agenda

HighlightsFinancialsStrategic ReviewUpdate on operationsSummary and outlookQ&A

4

Financial headlines

Group Revenue £ 345.1m 5.1%

Profit Before Tax £ 53.8m 22.6%

Earnings Per Share 24.9p 34.6%

Dividends Per Share 6.53p 12%

Cash flow £ 30.6m 40.2%

5

Stephen KingFinance Director

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Financial Results

Half year ended 29 September 2007 £m1st half2007/08

£m

1st half2006/07

£mChange

Sales 345.1 328.4 5.1%

Operating profit 48.9 39.4 24.1%

Share of profits of associated companies 2.9 2.2

Interest - On net bank balances 1.7 1.5

- Retirement benefit obligation 0.3 0.8

Profit before tax 53.8 43.9 22.6%

Group headline earnings per share 24.9p 18.5p 34.6%

Dividends per share 6.53p 5.83p 12.0%

Net Cash 43.3 98.9

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Segmental Analysis - First Half 2007/2008

8.914.3Underlying change

34.7183.5Reported H1 2007/2008

(2.9)(1.0)Exchange

28.7170.2Reported H1 2006/2007

Security Paper and Print

OperatingProfit

Revenue£m

14.2161.6Reported H1 2007/2008

4.78.5Underlying change

(1.2)(5.1)Exchange

10.7158.2Reported H1 2006/2007

Cash Systems

48.9345.1Group Total

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Cash Systems – Exchange Differences

TOTAL EXCHANGE LOSSES

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

2004/2005 2005/2006 2006/2007 H1 2007/2008

£m

TransactionalTranslational

US $Average 1.84 1.79 1.89 2.00

US $ : SEKAverage Rate 7.26 7.65 7.19 6.80

-5%US$: SEK% change in Ave rate -7% +5% -6%

(4.1)

(0.8)(1.5)

-

+

(1.2)

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Associates

£m 1st half2007/08

1st half2006/07

Full Year 2006/07

Profit before tax 4.3 3.3 9.7

Tax (1.4) (1.1) (3.1)

Profit after tax 2.9 2.2 6.6

20% stake in Camelot, the UK lottery operator

Camelot won the bid for the third licence in August 2007

£10m investment made in first half for subscription of redeemableshares in Camelot

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Tax

18.2

3.1Germany change in rate impact – one-off charge30.513.115.1Underlying tax charge

102.443.953.8Profit before tax

Full Year 2006/07

%

1st half2006/07

£m

1st half2007/08

£m

13.1 30.5

29.9%29.9%28.0%Underlying effective tax rate

Underlying effective tax rate was 28.0% (2006/2007: 29.9%)

Rate excludes a one-off charge of £3.1m relating to the impact on deferred tax assets of a reduction in the German statutory tax rate

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Group Earnings per Share

£m 1st half2007/08

1st half2006/07

Change

Profit before tax 53.8 43.9 22.6%

29.6%

34.6%

Effect of German deferred tax (2.0p) -

23.8%

Tax charge (effective rate – 28.0%) (2006/7: 29.9%) (15.1) (13.1)

Minority Interests (0.2) (1.1)

Underlying Earnings 38.5 29.7

Average number of shares (millions) 154.8 160.9

Headline earnings per share 24.9p 18.5p

Basic earnings per share 22.9p 18.5p

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Cash Flow

(13.5)(4.2)Share buy backs

(40.2)%

24.1%

Change

-(74.4)- Special

98.943.3Net cash

7.3(94.0)Net cash flow

0.4(1.5)Share capital issues, exchange and other

4.04.7Associate dividends received

1.2(9.8)Acquisitions and disposals, fixed asset sales

(19.0)(21.2)Equity dividends - Ordinary

(9.2)(9.2)Capital expenditure

(7.8)(9.0)Interest and taxation

51.230.6Cash flow from operating activities

4.64.5Other items(2.6)(0.4)Exceptional items – cash expenditure

(1.5)(32.9)Working Capital11.315.4Depreciation and amortisation

39.448.9Underlying Operating Profit

1st Half2006/07

1st Half2007/08

£m

Pension Fund – special contribution (4.9) -

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UK Pension Scheme

Last formal (triennial) valuation April 2006- Ongoing funding deficit of £56m

Company agreed to pay down deficit over 6 years- First payment of £7m in March 2007- Second payment of £4.9m in H1 2007/2008

IAS 19 Valuation- IAS 19 Deficit of £75.7m in March 2007- Now reduced to £52.8m at the half year 2007/2008

14

Leo QuinnChief Executive

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Delivering value to shareholders

Modest top line growth

Profit improvement through cost reduction and productivity improvement

Increase cash generation

Improve returns to shareholders

STRATEGIC REVIEW TO DEFINE NEXT PHASE OF GROUP’S DEVELOPMENT UNDERWAY

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De La Rue’s Strategy – Positive Results

318.3 290.7 328.4 345.1

0

100

200

300

400

H12004/2005

H12005/2006

H12006/2007

H12007/2008

£m

REVENUE

Group Revenue – Modest top line growth

10.6 11.818.5

24.9

0

10

20

30

H1 2004/2005

H1 2005/2006

H1 2006/2007

H1 2007/2008

£m

EPS

Earnings Per Share – Strong profit growth

CASHFLOWCASHFLOW

Operating Cash flow – Strongly cash generative

92.1 98.7 106.7144.5

0

30

60

90

120

150

2003/2004 2004/2005 2005/2006 2006/2007

£m

6.79.4

12.014.2

0.0

5.0

10.0

15.0

H1 2004/2005

H1 2005/2006

H1 2006/2007

H12007/2008

%

MARGINS

Group Operating Profit Margins – Consistent improvements

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Operating ReviewSecurity Paper and Print

Strong revenue (up 7.8%)Margin improvement (up 2ppts) through higher value features and continuing productivity improvementsContinued exceptional level of banknote demand Strong paper volumes driven by the excellent print order book

Strong order book, providing full visibility for H2 and into 2008/2009Second half performance in Security Paper and Print to be significantly ahead of the corresponding period last year.

12 new patents filed in last 12 monthsLaunched Edgestone™ (anti-tear watermark) and Multitext™ (thread based feature)New ePassport manufacturing facility will be operational during Q4 2007/2008Continued focus on R&D in passport systems and security features

RESULTS INNOVATION

£m 2007/2008 2006/2007

Sales- Half year on half year

increase

183.57.8%

170.213.7%

Operating Profit 34.7 28.7Operating Profit Margin 18.9% 16.9%

H1 TRADING OUTLOOK

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Security Paper and PrintMajor Items of Capex Investment since March 2004

New FactoryePassports

Malta£2.0m

Gravure PressSecurity Threads

UK£3.0m

New PapermakingMachinery

Overton, UK£7.0m

New LineSecurity PrintDulles, USA

£1.0mNew Printing

Press MachineryMalta

£16.0m

NOW STARTING TO BENEFIT FROM £52m INVESTMENT IN LAST THREE YEARS

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Security Paper and Print InnovationStarChrome® thread Edgestone™ watermark Multitext™ thread

Cornerstone® watermark Gemini™ U/V feature

Performance/ Efficiency

Mask™ intaglio feature

Teller recognitionfeatures

Public recognitionfeatures

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Operating ReviewCash Systems

Strong trading performances in OEM, DTP and the Sorter businessTeller Automation market remains competitiveNorth America decision cycles lengthening New product introductions benefited H1Continued margin improvement through ongoing operational and supply chain efficiencies

Division trading in line with expectationsStrong order backlog for second halfContinued focus on innovation and operational improvements

Good level of orders in H1 from new products- VERTERA ™, EV86™ Series, Quickchange™

New product trials in 2007/2008:- Nvision™ multi currency counter- Next generation CPS (large sorter)- Kalebra P2 (4 pocket counter)- Enterprise Cash Management Software

(Business Intelligence Module)

FINANCIALS INNOVATION

£m 2007/2008 2006/2007

Sales- Half year on half yearincrease

161.62.1%

158.212.2%

Operating Profit 14.2 10.7

Operating Profit Margin 8.8% 6.8%

H1 TRADING OUTLOOK

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Cash Systems Innovation

VERTERA™ – Teller Cash RecyclerNvision™ - Two Pocket CounterEV86 Series – Single Pocket Counter

Kalebra® P2 Four Pocket Sorter CPS Banknote Sorter QuickChange™ – Coin Sorter

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Progress on Strategic Actions

31.3 33.1

124.7

73.3

87.581.1

44.8

76.8

100.3

89

42.1

83.2

64.0

89.4

99.7

71.6 71.9

34.2 36.0

47.0

0

20

40

60

80

100

120

140

Stock Trade Debtors Trade Creditors Adv. Payments Trade WorkingCapital

£m

March 2004March 2006March 2007Sept 2007

TRADE WORKING CAPITAL

IMPROVED CUSTOMER ANDSUPPLIER TERMS

TRADE WORKING CAPITAL HAS HALVED OVER THE PERIOD

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CASH FLOW GENERATED OVER LAST THREE AND A HALF YEARS

42.9

263.5

24.618.9

2.2 282.6 6.3

2.2

0

50

100

150

200

250

300

350

400

Operating profitsWorking capitalAssociate dividendsDepreciation less capex

Interest & tax paidReorganisation costs

Other

Free cashflowAcquisitions & disposals

Ord. DividendsSpecial dividendsShare buy-backNet cash generated

£m

Special Dividends£142.7m

Ordinary Dividends£102.8m

(45.8)

(23.7)

Buy Backs£41.2m

(286.7)mPAID

DURING THE PERIOD RETURNED 109 PER CENT OF GROUP OPERATING PROFITS

Progress on Strategic Actions

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Strategic Review

Results demonstrate achievement of first phase in our programme to build substantially improved shareholder returns.

Strategic review underway to define the next phase of the Group’s development, including an assessment of :

- the Group’s structure- the appropriate balance sheet capitalisation and dividend policy.

Expect to update the market on this strategic review at the full year results in May 2008.

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Outlook

The Group continues to have a strong order backlog in both operating divisions.

Given the strength of the order book in Currency and the benefits of continuing to operate at high levels of productivityand capacity, we expect second half performance in Security Paper and Print to be significantly ahead of the corresponding period last year.

Cash Systems continues to trade in line with expectations.

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Summary

Highly successful phase one

Right time to consider the next phase of Group’s development

Update market on strategic review with full year results in May 2008

DELIVERING VALUE TO SHAREHOLDERS

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SUPPLEMENTARY SLIDES

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Currency Overspill / Base

Banknotes Base / Overspill Percentage of Sales

0

20

40

60

80

100

2003/04 2004/05 2005/06 2006/07 H1 2007/2008

%

Base

Overspill

26%17%38% 31%

(Includes Debden activities)

8%

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Currency Banknote Contribution

Contribution Per Banknote - 12 Month Moving Average

90

95

100

105

110

115

120

2002/2003 2003/2004 2004/2005 2005/2006 2006/2007 2007/2008HY

Inde

x (%

)

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Interim Results 2007/2008

Currency Volumes – First Half

2007/2008 2006/2007

Underlying banknote volumes – increase/(decrease) (2.6%) 26.4%

Overspill – as a % of total banknote volumes 8% 25.0%

Paper volumes – (reduction)/increase 10.6% 13.3%